New Issue: UBS prices $100,000 trigger autocallable optimization notes tied to Bank of America

By Angela McDaniels

Tacoma, Wash., July 20 - UBS AG, London Branch priced $100,000 of 0% trigger autocallable optimization securities due July 27, 2012 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call return of 25.22% if Bank of America stock closes at or above the initial share price on Oct. 20, Jan. 20, April 20, 2012 or July 20, 2012.

The payout at maturity will be par if Bank of America stock finishes at or above 75% of the initial share price. Otherwise, investors will be exposed to the decline from the initial share price to the final share price.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

Issuer:	UBS AG, London Branch
Issue:	Trigger autocallable optimization securities
Underlying stock:	Bank of America Corp. (NYSE: BAC)
Amount:	$100,000
Maturity:	July 27, 2012
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If Bank of America stock finishes at or above trigger price, par; otherwise, par plus stock return
Call:	At par plus premium of 25.22% per year if Bank of America stock closes at or above initial share price on Oct. 20, Jan. 20, April 20, 2012 or July 20, 2012
Initial share price:	$9.85
Trigger price:	$7.39, 75% of initial price
Pricing date:	July 20
Settlement date:	July 25
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	0.75%
Cusip:	90267X478

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